Finance

Bank of England's Greene says UK pay outlook worries her

Published by Global Banking & Finance Review

Posted on October 8, 2026

1 min read

· Last updated: October 8, 2026

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Bank of England's Megan Greene Worried About 2024 UK Pay Growth Outlook

Concerns Over Wage Growth and Inflation Targets

Projected Pay Increases for 2024

LONDON, Oct 8 (Reuters) - British employers look on course to raise pay by around 3.5% next year, a bigger increase than would be helpful in returning inflation to its 2% target, Bank of England policymaker Megan Greene said on Thursday.

Megan Greene's Statement on Wage Disinflation

"Early indications are that pay settlements should grow by around 3.5%. So there's not a whole lot of wage disinflation happening there, and that worries me," she said at a conference in Cape Town hosted by South Africa's STANLIB Asset Management.

Interest Rate Decisions and Market Expectations

Greene voted in June, July and September for the BoE to raise interest rates by a quarter-point to 4%. Financial markets expect a majority of the BoE's Monetary Policy Committee to back a rate rise to 4% at their next meeting in early November.

Reporting Credits

(Reporting by David Milliken; editing by Suban Abdulla)

References

Frequently Asked Questions

Why is Megan Greene concerned about UK pay growth?

Megan Greene is concerned because UK pay settlements are expected to grow by 3.5%, which is higher than what would help bring inflation back to the Bank of England's 2% target.

What pay increase are British employers expected to offer in 2024?

British employers are expected to raise pay by around 3.5% in 2024.

How might UK wage growth affect inflation?

Stronger wage growth could keep inflation above the Bank of England’s 2% target, making it harder to achieve price stability.

What is the likely response from the Bank of England to rising wage growth?

The Bank of England is expected to raise interest rates, with the next rate hike anticipated at their meeting in early November.

Who reported the comments made by Megan Greene?

The comments were reported by David Milliken and edited by Suban Abdulla.